Joanna Szyman, president of NEO Hospital and CBT Center: "Medicine in transformation: where innovation and capital meet" [INTERVIEW]

The Polish healthcare market today stands at the intersection of growing social needs and rapid technological progress, making it one of the most dynamic sectors of the economy. Investors are increasingly looking at medicine, seeing it not only as a challenge but also as a source of enormous opportunity – from digitization to mental health. Joanna Szyman describes the trends shaping the healthcare market.

The Polish healthcare sector is currently at a unique juncture. On the one hand, social needs are growing, driven by an aging population and the mental health crisis, while on the other, a persistent lack of investment in infrastructure and human resources remains evident. Global trends are also gaining momentum: digitization, the use of artificial intelligence, telemedicine, and surgical robotics. This makes the healthcare market an area of ​​enormous challenges, but also opportunities – for both medical entities and investors.

The attractiveness of individual segments of medicine depends on many factors – primarily demographic needs, the pace of technological progress, and the extent of systemic underinvestment. The areas I personally engage in have enormous development potential: hospital care utilizing modern technologies, including medical robotics, as well as mental health and education. The former responds to growing patient expectations regarding the quality and safety of treatment, while the latter addresses the growing mental health crisis, particularly among children and adolescents.

In addition to these sectors, other areas are also attracting increasing investor interest. Outpatient care, both primary and specialist, is gaining importance, as patients expect quick access to doctors and diagnostics. Complementary services, such as post-rehabilitation and rehabilitation, also play a significant role, supporting the treatment process and increasing its effectiveness. We cannot forget about areas dominated by private operators – especially dentistry – which are characterized by high margins and resilience to economic fluctuations. Simultaneously, the importance of digitization and telemedicine is growing, improving facility efficiency and opening up new opportunities for patient contact.

The common denominator for investors remains the search for segments that combine growing healthcare needs with the ability to scale the business and build long-term value.

EBITDA multiples, which take into account growth dynamics, revenue stability, and cash flow predictability, remain the basis for valuing healthcare businesses in Poland. However, investors are looking beyond financial metrics. It's not just what a company achieves today that matters, but also its ability to generate value in the future.

In assessing a business, the revenue structure is crucial – whether contracts with the National Health Fund (NFZ), commercial patients, or a combination of both sources predominate. Patient loyalty, a stable customer base, and long-term relationships with insurers are also important. Structured operational processes, effective management models, and a transparent organizational structure are highly valued. The quality of the medical staff, modern infrastructure, and the level of process digitization are also invaluable. Finally, there are prospects for further development, the possibility of geographic expansion, and the introduction of new services.

The most attractive entities are those that can combine operational stability with a clear growth path and resistance to regulatory or demographic changes.

The answer to this question depends largely on the investor's profile. Companies in a dynamic growth phase that can quickly scale their operations attract the attention of private equity funds and growth investors. For them, the pace of expansion, market penetration, and high revenue growth are key, even at the cost of greater operational risk.

In turn, stable entities with structured processes are preferred by conservative long-term investors and large industry groups. For them, predictability, secure cash flow, and the ability to integrate into the broader organizational and clinical structure are paramount.

In practice, the greatest value is achieved by companies that are able to combine both models – on the one hand, they present a stable revenue base, and on the other, they offer the potential for further development.

Although traditional financial metrics remain the foundation of valuation, the role of technology in investment processes is steadily growing. Process digitization, telemedicine, and the use of artificial intelligence in diagnostics improve operational efficiency and facilitate business scaling. Modern infrastructure also increases the attractiveness of the facility in the eyes of patients and medical staff.

Technological innovations are increasingly being viewed by investors as a measure of a business's innovativeness and adaptability to future trends. As a result, while they don't replace traditional financial metrics, they are increasingly determining competitive advantage and representing a real premium in valuations.

The contract with the National Health Fund (NFZ) remains an important element in the valuation of many entities, especially where it underpins the business model and guarantees stable revenues. For some investors – especially conservative ones – this stability is crucial.

At the same time, there are segments where public contracts are of marginal importance or even nonexistent. This applies to dentistry, ophthalmology, and aesthetic medicine, for example, where the value of a business depends solely on the ability to attract commercial patients, the quality of services provided, and the competence of its staff.

Therefore, the importance of a National Health Fund contract in a company's valuation depends on both the nature of the business and the investor's profile. The most attractive entities are those that can combine the security of public contracts with a growing commercial segment or fully leverage their advantage in the private market.

The value of a healthcare business isn't derived from a single factor. It's always a combination of many elements: competent and stable staff, patient trust, modern technologies, developed infrastructure, and well-organized operational processes. In practice, the synergy between these areas is paramount, as it translates into long-term attractiveness and competitive advantage.

Investment strategies in healthcare can be reduced to two models. The first is building from the ground up, which allows complete freedom in shaping the business model, organizational culture, and process structure. However, this path requires time, significant capital expenditure, and patience in building a market position.

The second option is to enter an existing organization through acquisition. This allows for faster market entry, leveraging an established reputation, patient base, and team know-how. The biggest challenge in this case is skillfully reconciling the investor's vision with the company's existing culture and values. Success depends on open communication, valuing employee achievements, and gradually implementing change.

M&A processes are complex and require high precision. Transparency and complete documentation, realistic valuation, identification of potential risks, and a clear future perspective are crucial. Cooperation and a partnership approach between sellers and investors are equally crucial – open communication and mutual trust often determine the success of the entire process.

Professional preparation, support from experienced advisors, and skillful demonstration of development potential make the company much more attractive to investors and increase its chances of successfully finalizing the transaction.

Growing social needs, systemic underinvestment and rapid technological progress make health investments one of the most promising directions in the coming years.

The most valuable entities are those that can combine stability with growth potential, tradition with innovation, and local experience with scalability. For owners and managers of medical facilities today, it's crucial not only to effectively manage current operations but also to strategically think about the future – because this is what determines value in the eyes of investors.

Author: Joanna Szyman